Tesla, Inc. (NASDAQ:TSLA) confident it can consistently generate cash and profit

Tesla, Inc. (NASDAQ:TSLA)  confident it can consistently generate cash and profit

Tesla, Inc. (NASDAQ:TSLA) confident it can consistently generate cash and profit

Tesla’s shares hit a key milestone on Thursday that considerably eases pressure on the company.

Shares closed around $363 on Thursday, higher than the conversion price of $359.88 per share on the $920 million in convertible bonds due in March. It was the first time they closed above that price since August 8, the day after CEO Elon Musk issued his infamous tweet about having already secured the funding necessary to take Tesla private.

The stock has been under pressure since. Musk abandoned the plan by the end of August and was subsequently sued by the Securities and Exchange Commission. The two parties settled in October.

But Tesla surprised investors that same month with a profitable third quarter, giving hope that the company’s production rates will improve. Musk said he now expects Tesla to be consistently profitable and cash flow positive. Before the October report, Tesla had posted a quarterly profit only twice since going public in 2010.

Tesla may choose to pay off that debt with a mixture of half cash and half stock, Bloomberg reported, citing documents. Using both cash and stock to pay off convertible debt might signal that Tesla is confident it can consistently generate cash and profits.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 347.13.

The projected lower bound is: 285.73.

The projected closing price is: 316.43.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 6.3679. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 36.20. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 71 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -207.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -17.590 at 315.380. Volume was 3% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open High Low Close Volume___
327.053 330.290 311.869 315.380 9,071,858

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 353.28 328.79 312.85
Volatility: 50 63 72
Volume: 7,528,391 8,489,332 9,282,945

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TESLA INC is currently 0.8% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 3 periods.

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